Türkiye signs cooperation deal with Azerbaijan covering energy, trade, investments

BAKU

Türkiye and Azerbaijan signed the 12th Joint Economic Commission (JEC) protocol on Monday, featuring a 110-point action plan spanning energy, trade, investments and tourism.

The agreement was inked by Turkish Vice President Cevdet Yılmaz and Azerbaijani Prime Minister Ali Asadov in Baku.

Yılmaz recalled the Shusha Declaration signed by President Recep Tayyip Erdoğan and Azerbaijani President Ilham Aliyev on June 15, 2021, which elevated bilateral relations to a strategic alliance.

He said current cooperation aims to boost prosperity across the Turkic world, primarily through the Organization of Turkic States (OTS), on regional and international scales.

With this vision, Yılmaz noted that JEC meetings provide a roadmap for concrete projects toward shared economic objectives, turning collaboration into results.

He reported that 93 of the 120 items from the 11th JEC action plan in 2024 were completed, achieving a 78 percent success rate.

This has fostered new achievements in trade, investments, contracting, industry, transportation, energy, education and agriculture.

"Within this framework, through the joint work of our delegations, we sign a new 110-item action plan together today. This new action plan includes concrete actions such as exploring the possibilities of signing a Free Trade Agreement, establishing cooperation in investment/service trade in third countries, establishing a Joint Working Group for the integration of Azerbaijan into the New Computerized Transit System, establishing joint industrial training centers, signing a cooperation agreement in the field of agriculture, developing cooperation in oil and natural gas projects, and organizing experience-sharing programs in a wide range of areas from health to tourism, banking to public procurement," Yılmaz said.

"As in the previous action plan, I would like to emphasize once again the importance of our institutions taking ownership of our goals and fulfilling the items for which they are responsible until the next Joint Economic Commission meeting," he added.

Türkiye's investment in Azerbaijan reaches $18 billion

Yılmaz said bilateral trade volume reached a record $8 billion last year.

"In this context, our $15 billion trade volume target is only a medium-term goal showing our potential. Our main goal is to reach the capacity for joint production, joint investment and joint project development in third countries. While pursuing this goal, removing bureaucratic obstacles for our business communities and accelerating customs and logistics processes will be our top priority," he explained.

"Considering Türkiye's investments made through third countries, Türkiye's investments in Azerbaijan have reached $18 billion, while Azerbaijan's investments in Türkiye have reached $21 billion.

"We should not be mere 'transit countries' delivering the riches of the Caspian Sea to the West; we should be strategic centers where energy is managed and supply security is ensured. In this context, we should diversify our energy cooperation to include renewable energy sources and strengthen our alliance in the energy sector by implementing the energy corridor we have planned through Nakhchivan as soon as possible," he emphasized.

Yılmaz highlighted key indicators of cooperation: increased collaboration between Turkish Petroleum (TPAO) and Azerbaijan State Oil Company (SOCAR), the opening of the Iğdır-Nakhchivan Natural Gas Pipeline, an agreement for BOTAS, SOCAR and TPAO to conduct joint activities in third countries, and the Green Electricity Transmission and Trade Project along with the Türkiye-Azerbaijan-Nakhchivan Interconnection Project, demonstrating visionary ties.

"Another important aspect of our bilateral relations is the Middle Corridor, referred to as the Silk Road of the 21st century, which has gained unprecedented vital importance today, turning eyes to the East-West route via the Caspian Sea," he noted.

Yılmaz stressed that potential alone is insufficient; transforming it into sustainable logistics infrastructure lies with both countries. This will lay the foundation for the Modern Silk Road, shaping trade from China to Europe through the enduring Türkiye-Azerbaijan alliance.